INTRODUCTION
Employee Satisfaction can be defined as how an employee is happy at his work place which can be shown by his loyalty and commitment towards the organization. Job satisfaction is about the feeling of the nature of the job. Employee Satisfaction is very important in an organization because it is what productivity depends on. An organization with more satisfied employees tends to be more effective (Robbins & Judge, 2007). Another major impact that job satisfaction can have is worker’s commitment to the organization and its culture.
Customer satisfaction can be defined as how a customer is happy or agrees to purchase the product and services again, shown by his loyalty and commitment towards the product and services offered by the organization. Customer satisfaction is a mental state which results from the customer’s comparison of a) expectations prior to a purchase with b) performance perceptions after a purchase.
It has been argued that behavior of satisfied employees plays an important role in shaping customers' perceptions of business interactions (Spiro and Weitz, 1990). This phenomenon may occur as satisfied employees are more apt to be friendly, enthusiastic, attentive, and empathetic toward customers (Beatty et al., 1996; Rafaeli, 1993).
According to the concept of partner effects, a person is in some way, verbally or nonverbally, influenced by the characteristics and behaviors displayed by his or her counterpart (Dolen et al., 2002). Additionally, the contagion effect explains how satisfied employees influence others around them to feel good (Hatfield et al., 1993). As such, Schneider and Bowen (1985) said that employee job satisfaction is positively related to customers' perceptions of service. This notion suggests that employees who have higher levels of job satisfaction also believe they are able to deliver excellent service (Schlesinger